Amazon's rapid enhancement of their suite of advertising tools and functionality amount to a reshaping of the Marketplace. In this session, we look at Amazon's recent updates as an indicator to where they will be investing in their ad programs moving forward and how your brand can be best positioned for the future.

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The Future of Advertising on Amazon
and How Brands Can Plan Ahead

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1. Sponsored Ads Advertising: More Competitive
and More Important
2. Advertising as the Core Driver of Growth
3. Amazon Advertising Tools: Are You Keeping Up?
4. Amazon’s Place in Your Digital Strategy
Agenda
Agenda

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Sponsored Ads Advertising:
More Competitive and More Important

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Sponsored Ads Advertising: More Competitive and More Important
Advertising is Getting More Competitive & More Important
Average CPC from 8/1/18 - 7/31/19
• Average CPCs: $0.60 to $0.74, 23% increase
• Advertising sales increased by 261%
• Apparel advertiser

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Sponsored Ads Advertising: More Competitive and More Important
Advertising is Getting More Competitive & More Important
Average CPC from 8/1/18 - 7/31/19
• Average CPCs: $0.94 to $1.32, 40% increase
• Advertising sales increased by 72%
• Electronics accessories advertiser

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Sponsored Ads Advertising: More Competitive and More Important
Advertising is Getting More Competitive & More Important
Average CPC from 8/1/18 - 7/31/19
• Average CPCs: $1.48 to $1.90, 28% increase
• Advertising sales increased by 78%
• Beauty advertiser

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Sponsored Ads Advertising: More Competitive and More Important
Advertising is Getting More Competitive & More Important
Average CPC from 8/1/18 - 7/31/19
• Average CPCs: $2.67 to $2.54, 5% decrease
• Advertising sales increased by 348%
• Health & Household advertiser

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Sponsored Ads Advertising: More Competitive and More Important
Advertising is Getting More Competitive & More Important
What Defines Strategic Competitive Advantage on Amazon?
• Early days of Amazon: “Fish where the fish are”.
• First wave of evolution: Winning through using all of the core tools of Amazon (FBA, Brand Registry,
Sponsored Products).
• Second wave of evolution: Differentiation through content improvements, operational hygiene, and
understanding the impact of product reviews.
• Current evolutionary wave: Greater competition has lead to a greater need to keep up and adopt all
of Amazon’s advertising and branding tools more quickly and thoroughly.

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Advertising as the Core Driver of Growth

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Advertising as the Core Driver of Growth
New Normal

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Advertising as the Core Driver of Growth
New Normal

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Advertising as the Core Driver of Growth
Advertising Drives Growth
Advertising
Increase Traffic
Increases Traffic
Content optimization converts traffic into sales
Increase Sales
Boost sales history
Organic Ranking
Increase traffic
Optimize listings for search
Customers should able to find your products
before they can buy them, and searching is the
primary way they can do that. Customers search
by entering keywords and Amazon matches this
against the information (title, description, delivery
speed, and so on) that you provide for a product.
Factors such as degree of text match, price,
availability, selection, and sales history help
determine where your product appears in a
customer's search results.
https://sellercentral.amazon.com/gp/help/help.html/?itemID=G10471&ref_=xx_G10471_a_r0_cont_sgsearch

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Advertising as the Core Driver of Growth

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Advertising as the Core Driver of Growth

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Advertising as the Core Driver of Growth
Advertising is the Central Focus for Top Performers
Advertising is Driving Growth on Amazon
• Among our top performing clients, advertising is pushing an incrementally greater % of
growth and making up an increasingly greater % of total sales.
• Once you have a secure operational foundation and quality content, advertising is the most
important and controllable lever for scaling growth.
• Advertising is the most effective and proven new product launch input.

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Amazon Advertising Tools:
Are You Keeping Up?

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Amazon Advertising Tools: Are You Keeping Up?
Adoption -> Investment -> Optimization
Investment OptimizationAdoption

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Amazon Advertising Tools: Are You Keeping Up?
Amazon Product Functionality Enhancements
Recent Evolution of Amazon Advertising Tools

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Amazon Advertising Tools: Are You Keeping Up?
Sponsored Products Targeting
Sponsored Products Product Attribute Targeting [Updates]

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• Brand
• Price Range
• Review Rating
• Prime Eligibility [New]
• Age Range (Toys and Games category only) [New]
Amazon Advertising Tools: Are You Keeping Up?
Sponsored Products Targeting
Refinement Options

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Amazon Advertising Tools: Are You Keeping Up?
ASIN Optimized Sponsored Brands
ASIN Optimized Sponsored Brands

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Amazon Advertising Tools: Are You Keeping Up?
Amazon Brand Analytics
Brand Analytics: Demographics
• Age
• Gender
• Household Income
• Marital Status

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Amazon Advertising Tools: Are You Keeping Up?
DSP Dynamic Ecommerce Ads
DSP DEA Creative

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Amazon Advertising Tools: Are You Keeping Up?
Sponsored Display Beta
Legacy PDA Functionality Now Within Sponsored Display

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Amazon’s Place in Your Digital Strategy

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Amazon’s Place in Your Digital Strategy
Evolution of Your Amazon Mindset
Legacy Amazon Strategy Amazon Strategy for Market Leadership
Amazon as a channel within your business. Amazon as a core component of your digital brand presence.
Amazon as a demand capture engine. Amazon as a brand building destination.
Siloed Amazon budget. Amazon integrated into digital brand budget.
Customers vs “Amazon customers”.
Holistic view of your audience, who they are, what they want, what
delights them.
Total opportunity defined by what customers are searching for on
Amazon.
Total opportunity defined by potential shoppers at any point in
their product purchase journey off and on Amazon.
Obsessed with organic ranking. Obsessed with quality content.
Harvesting keywords. Harvesting keywords and ASINs.

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Amazon’s Place in Your Digital Strategy
Evolution of Your Amazon Mindset
Adoption
● Brands are still under indexing in DSP, an Amazon display market inefficiency
is still available, but won’t be forever. Act now.
● Stores, Sponsored Brands, videos, product detail page content: make your
brand beautiful.
● Top brands have differentiated, multi-page and seasonally updated Stores.
● PDAs are starting to fade away. Now is the time to revisit your Product
Attribute Targeting and Sponsored Brand campaigns.
● Adoption is not the act of downloading weekly reports and checking
performance, adoption is embracing new advertising products and
opportunities with appropriate resource investment.

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Amazon’s Place in Your Digital Strategy
Evolution of Your Amazon Mindset
Investment
● Launching a new season / product line, investing in creative, and having those
campaigns hit Amazon as well as other digital channels.
● Focus more on CVR, building a demand creation funnel on Amazon that is
going to convert higher than your own website, and dedicating the investment
to support it.
● Understanding that some of your most valuable spend will be in identifying
where your best opportunities are for further investment.
● We are still in early days of investment in Amazon Advertising, the market is
maturing but there’s still plenty of runway.
● Prime Day opportunity and reward is only growing over time.

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Amazon’s Place in Your Digital Strategy
Evolution of Your Amazon Mindset
Optimization
● Sharing audience and buyer information, demographics, and shopper
information across digital channels, relevant to Amazon now that you can go
top of funnel.
● If you are not testing you are dying.
● Set clear goals for what defines success, resist the urge to abandon your
objectives.
● One of the few guarantees you have is that Amazon will keep changing. Foster
a culture of flexibility and openness to that change.
● Every day is Day 1

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Thank You